At the beginning of the year, Netflix offered us a documentary “crypto parano: research at the borders of the virtual”, a look back at the bankruptcy of the bitcoin (BTC) platform QuadrigaCX (Quadriga Coin Exchange) and its premature death. founder Gerry Cotten at 30 years old.
Bitcoin (BTC) was born in 2009. In its early days, it was reserved for a few computer and technology savvy insiders. Then we saw the birth of a couple of platforms that suffered attacks and exit scams resounding for the most part. Who does not remember MtGox (2009-2014) and its ingenious creator (he wanted 190 IQ) Mark Karpeles, arrested and then finally released after the hacking of his platform.
It was in 2013 that was born QuadrigaCX in Canada, a boon for bitcoin (btc) aficionados who are finally seeing the opportunity to keep their cryptocurrencies and trade with them. For the most greedy, it is a chance to quickly get rich, ignoring the innovative technology or ideal of the creator of bitcoin Satoshi Nakamoto. As the value of bitcoin only rose from $ 100 in 2013 to $ 20,000 at the end of 2017, the temptation was great for investors. But it seems that greed is a very bad advisor, and the few hundred thousand users paid the price a few years later: In 2018, bitcoin fell and pulled it down. Quadrigaa platform that was actually only one ponzi scheme.
Netflix Documentary ” crypto paranoid whose English title is probably more explicit (“ Trust No One: Hunt for the Crypto King“, Trust no one: the hunt for the king of cryptocurrencies) tells us about the birth of this new platform: the enthusiasm for bitcoin (btc) and the dream of wealth. At the beginning of the documentary, a victim tells us about his painful experience (and puts our overdraft in perspective, etc.). Panic arises, more questions from aggrieved users who will develop all sorts of theories and finally the complaint and the official investigation from the Canadian authorities. Finally, nothing very original, a chart that could not be more classic to describe a scam that is also quite classic. The strange death of Gerry Cotten at the age of 30 adds a bit of mystery and will trigger and still trigger the craziest rumors, some will even ask for the young man’s autopsy.
Which audience for “paranoid crypto”?
This documentary can arouse fear and mistrust in people who are still very cautious, especially in France, about technologies and areas they do not know. Not to mention that in terms of cryptocurrencies, the general French media and banks never get tired of pointing out the “danger” associated with investing in bitcoin (btc) and its little brothers and sistersaltcoins, which provokes money laundering, mafia and terrorism (which the author of the documentary does not fail to do either). In short, this documentary probably comforts some viewers with the idea that it is better to stay away from bitcoin (BTC).
As for the others, more experienced, well they will only see one ponzi scheme as there are in all areas of finance, the most famous of them is without a doubt the Bernard Madoff which will have lasted about fifteen years with embezzlement of $ 65 billion, and this time no trace of bitcoin (BTC) …
Gerry Cotten is committed to the Ponzi scheme
In any case Gerry Cotten was probably not a genius, but a cunning trickster who, according to the investigation conducted by the Canadian authorities, was not his first attempt. With his partner Michael Patryn (who is leaving the company in 2016), he already had experience with Ponzi schemes. It is very likely Quadriga was originally intended as such. Canadian authorities have found out Cottonhad never kept any accounts, nor did he consider it useful to regularly declare his income, and in the rare occasions in which he did so he did not mention any of Quadriga . Cottonwould have cheerfully mixed his personal finances and those of Quadriga. With the fall of bitcoin (BTC), which traded at $ 4,000 in December 2018, it would have used its users’ accounts to trade and make more catastrophic operations than each other. In any case, the total loss, according to a balance sheet from the Ontario Securities Commission (OSC), is $ 169 million.
Jennifer Robertson Married Cotton a few months before his death, she claimed to know nothing about her deceased husband’s relationship and especially not to have the private keys to the purses. She returned a few million in miscellaneous assets and then moved to a discreet place with her new companion. Jennifer Robertson tells his short idyll withGerry Cottenin a bookBitcoin Widow“.
Ponzi games have been around since 1919, when Charles Ponzi invented this pyramid scheme in the United States. There are several examples of this in the bitcoin world (BTC), such as Bitconnect, Onecoin, Coinsignals and more recently in France with RR crypto and losses estimated at around fifty million euros.
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Subprimes, financial crises, galloping inflation, tax havens … Bitcoin was designed for more transparency and maybe finally change the game. I try to understand this new environment and try to explain it myself. The road is undoubtedly long, but it is worth it.